Company Number: 12433791

Analysis Date: 2025-07-20 17:47 UTC

1. Risk Rating: LOW
   The company demonstrates positive net current assets and net assets over recent years, with no overdue filings and modest borrowings. Its financial position appears stable with adequate liquidity to meet short-term obligations.

2. Key Concerns:

• Reduction in net assets from £91,283 in 2024 to £84,406 in 2025, indicating a slight decline in retained earnings which warrants monitoring.
• Increase in taxation and social security creditors from £25,858 to £35,234 year-on-year could imply timing differences in payments or potential cash flow pressures.
• Reliance on hire purchase contracts (loans) totaling approximately £1,695 (£1,453 current + £242 non-current) may pose refinancing risk if cash flows tighten.

3. Positive Indicators:

• Healthy net current assets of £80,567 as of 2025, supported by £67,944 cash on hand, showing strong liquidity.
• Consistent growth in current assets and shareholders’ funds since incorporation, reflecting operational expansion and retained profitability.
• No overdue statutory filings or compliance issues, indicating good governance and regulatory adherence.

4. Due Diligence Notes:

• Investigate the nature of increasing tax and social security liabilities to confirm there are no underlying payment disputes or liabilities at risk.
• Review turnover, profitability, and cash flow trends (not currently provided) to assess sustainability of business operations and ability to service hire purchase obligations.
• Confirm any contingent liabilities or off-balance sheet commitments that may impact future solvency.
• Validate the adequacy of debtor provisions given the notable decrease in trade debtors from £42,319 to £11,146, to ensure collectible amounts are realistic.